Ineke Dezentjé Hamming-Bleumink
President FME
Moderator

Arnold Stokking
Managing Director
TNO Industrial Innovation

Dutch Industry, fit for the future ?!
smart industry agenda
Our world is changing… and so our industry…. with impact on economy and society

The changing face of industry and society

Manufacturing industry in Europe has declined
in the last decade.

Industry is backbone of Dutch economy
Economic impact of manufacturing:
Direct impact: 68 billion Euro 13% of GDP in 2012
Total impact, including 50 billion euro indirect: 118 billion Euro = 22% of GDP.
Export:
50% of total production in manufacturing industry is exported.
Over 80% of total exported goods (without re-export) comes from manufacturing
industries. Germany is the main export country: 25% of the total exported goods.
Jobs:
10% of Dutch workforce in manufacturing industry: 825,000 people.
Total impact, including 7,5 % related jobs: 17,5% = 1,450,000 people.

Wold wide investments in New Industry
Dutch Industry wants to keep its competitive advantage
an initiative is needed

Smart Industry
Smart Industries are industries that have a high degree of flexibility
in production, in terms of:
• product needs (specifications, quality, design),
• volume (what is needed), timing (when it is needed),
• resource efficiency and cost (what is required),
• being able to (fine)tune to customer needs and make use of the
entire supply chain for value creation.
It is enabled by a network-centric approach, making use of the
value of information, driven by ICT and the latest available proven
manufacturing techniques.

Network Centric Production:
information as main source for value creation

Enabled by new, converging technologies
No single technology or technology domain governs the Smart Industry revolution.
There is an alignment and convergence of rapid progress in multiple domains.
Technologies are:
• the Internet of Things,
• next generation adaptive robots,
• 3D printing,
• further integration of embedded systems,
• smart grid technologies,
• man-machine interfaces,
• Cyber Physical Systems,
• advanced sensors,
• big data and cloud computing,
• zero defect manufacturing.

Smart changing industry and society
New business models
New products and services
Radical changes in the value chain of
book production & selling
Changes in retail sector and jobs…
..this will happen in other sectors also.

Opportunities and threats
There are clear opportunities:
• Smart Industry can enable leading competitive Dutch
industry sectors like High Tech, Chemicals, Logistics and
Agrofood strengthen their international positions.
• Dutch industry is highly internationally oriented, we have an
advantage in connecting to other countries.
But there are also threats to be countered:
• The human capital agenda
• Radical changes of structures in different sectors

We have a right to play
• Dutch companies are actively implementing ‘smart’
manufacturing technologies to retain their competitive advantage
• The open and non-hierarchical business culture provides
opportunities to develop the network centric way of production.
But extra effort is required:
• The mutual understanding and value creation between the ICT
and manufacturing industries is insufficient.
• Although knowledge on the different domains relevant to Smart
Industries is present, additional efforts are needed to create
integrated solutions, new business and new companies.

Smart Industry deepening the
Dutch strength in system integration

Outline Smart Industry Agenda
1. New Business with Smart Industry: boost on available
knowledge and current best practises.
2. New Knowledge with impact for Smart Industry: boost on new
(integrated) knowledge development and R&D investment.
3. New Skills for Smart Industry: skilling up and educating current
and future employees.
4. Supporting Policies for Smart Industry: make it happen.

Marc Hendrikse
President Brainport Industries
CEO NTS Group

19
Towards an integrated supply network
Showcase Brainport Industries
Marc Hendrikse
Chairman Brainport Industries, CEO NTS Group
John Blankendaal
Managing Director Brainport Industries

20Market focus of Brainport Industries
PHOTO VOLTAICPRINTINGANALYTICALMEDICAL
High mix, low volume, high complexity
SEMICON

21
Industry 4.0…?
Volume
Complexity
CD
players
Mobile
phones
Cars
Trucks
Hightech Equipment
Airplanes

22
This high-tech world is changing …
• World wide competition
• Increasing complexity
• Flexibility and agility demanded
• Shorter product life cycles
• Upfront investment for new product
development grows
• Pool of technical talent shrinks
• Cost price pressure
• Higher quality levels required
Market share US:
2009: 50%, 2013: 2%
Global market share:
2007: 50%, 2013: 3%

23
The answer is to be found in the supply chain
• Value chains compete instead of
individual companies
• Supply chain is designed to
outsource non-core activities or
functionalities
• Cooperation within high intelligent
networks is the model for the
future
• The supply chain opens itself and
takes more responsibility
Source: ASML Sustainability Report 2009

24Classic way of outsourcing
1. Research &
Development
3. Prototyping &
Industrialization
4.
Component
production
5. System
integratio
n
6. Sales &
Service
2. Design &
Engineering
1980: OEM VALUE CHAIN
• Subcontracting of component production only with different
suppliers

25Recent development in outsourcing
1. Research &
Development
4. Component
production
6. Sales &
Service
2. Design &
Engineering
3. Prototyping &
Industrialization
5. System
integration
Process Development
Sub-Assemblies
Components
Supply Chain Management
Sourcing & Life Cycle Mngt.
2000: OUTSOURCING PART OF THE VALUE CHAIN
• Outsourcing core processes including Process Development
• Outsourcing support processes like Supply Chain Management,
Sourcing and Life Cycle Management

26The near future of outsourcing
1st Tier
1. Research &
Development
3. Prototyping &
Industrialization
4. Component
production
5. System
integration
6. Sales &
Service
Sub-Assemblies
Components
Systems
2nd Tier
3rd Tier
2. Design &
Engineering
Process Development
Project Management & Staffing
Quality Assurance
Business Model Development, Financing & Funding
Sourcing & Life Cycle Management
Supply Chain Management
2020: OPEN SUPPLY CHAIN
• OEM transform to lean companies

27
Suppliers teamed up to create…
- 85 members
- € 2 billion turnover
- 9000 fte

28Addlab (shared 3D metal print facility)
• KMWE
• NTS-Group
• Frencken Europe
• Machinefabriek De Valk
• FMI
• MTA
• Philips Innovation
Services
• De Lage Landen

29
Smart Industry
• Early supplier involvement
• Working with OEM’s in joint development teams
• Sharing CAD systems
• Model based engineering
• Using PLM systems in life cycle
• Sustaining engineering during life cycle
• Full transparency in the chain
• Suppliers working together in pre competitive
projects

30Charles Darwin
Proudly stolen from the Origin of Species, 1859
It is not the strongest nor the most intelligent
of the species that survives but the one that is
the most adaptable to change.

3134
Thank you for your attention

32

Marion Horstmann
Head of Strategy
Siemens Industry

siemens.com/hannovermesseUnrestricted © Siemens AG 2014. All rights reserved.
The Future of Industry
Smart Industry – Dutch Industry fit for the Future | April 9, 2014

April 9, 2014
Unrestricted © Siemens AG 2014. All rights reserved.
Page 35 Marion Horstmann/Industry Sector
Our approach
Covering the entire product development and production process
Product
design
Production
planning
Production
engineering
Production
execution
Service
1
2
3 4 5
Integrated product development and production processes increase
productivity,
efficiency and flexibility in modern manufacturing

Unrestricted © Siemens AG 2014. All rights reserved.
April 9, 2014Page 36 Marion Horstmann/Industry Sector
Making things right
Siemens at Hannover Messe 2014
Design
Planning
Engineering
Production
Services

Unrestricted © Siemens AG 2014. All rights reserved.
April 9, 2014Page 37 Marion Horstmann/Industry Sector
Today’s portfolio:
Industrie 3.X
Vision for the future:
Industrie 4.0
• Massively extended semantics in M2M communications
• Rule framework and architecture for dynamic topologies
• Integrated process simulation
"We need five
doors"
"Checking process
completed"
"Car body
identified"
I am robot 1
I am the
conveyor
"Optimization
reduced tact time
by 10%"
"Simulate
and optimize
operation"
I am robot 2 I am robot 3
I am the car body
From Industrie 3.X to Industrie 4.0

Rob Karsmakers
Site Manager
Philips Consumer Lifestyle Drachten

Jan Post, Philips CL
Rob Snel, TNO
Hannover Messe, April 9th 2014

2014-04-09 Consortium Confidential 42
MEGaFiT
The work leading to these results has received funding from the European Community`s
Seventh Framework Programme under grant agreement n° FP7-285030
Adaptive process control to realise Zero Defect
manufacturing of complex high-precision metal parts.

2014-04-09 Consortium Confidential 43
MEGaFiT
The work leading to these results has received funding from the European Community`s
Seventh Framework Programme under grant agreement n° FP7-285030
The state of the art:
production & quality control of mass produced goods
Metal strip
•µm accuracy
•Off-line
Proces control
hours
Measurement labProduction
Physics modelling
Products
samples

2014-04-09 Consortium Confidential 44
MEGaFiT
The work leading to these results has received funding from the European Community`s
Seventh Framework Programme under grant agreement n° FP7-285030
The innovation:
100% in line quality control of mass produced goods
• Demonstration by cold forming of metals @ 100 parts/minute
• Real time extraction of shape parameters with µm accuracy
• Proces feedback ensures manufacturing quality → Zero Defect

2014-04-09 Consortium Confidential 45
MEGaFiT
The work leading to these results has received funding from the European Community`s
Seventh Framework Programme under grant agreement n° FP7-285030

2014-04-09 Consortium Confidential 46
MEGaFiT
The work leading to these results has received funding from the European Community`s
Seventh Framework Programme under grant agreement n° FP7-285030
The benefit:
generated by the 3D sensor
• The 3D sensor becomes available for in line quality control for a wide
range of industrial end-users. Zero Defect production means better
competitive products and less waste of resources.
• The 3D sensor technology is being transferred to SME companies. SME’s
sell an innovative metrology product. Create sustainable jobs.
• Knowledge spill over: we all get smarter by cooperation in the golden
triangle of government, companies and knowledge institutions.

Thank you for your attention!

Jasper Wesseling
Deputy director-general
Ministry of Economic Affairs